- Banco Santander
- 29 April 2026 12:05:47
Source: Sharecast
Spain’s largest bank said net profit rose 60% in the quarter to €5.46bn, boosted by a €1.9bn capital gain from the sale of its Polish business. Underlying net profit increased 12.5% year on year to €3.56bn, in line with analysts’ forecasts cited by Reuters, while Bloomberg said reported profit exceeded expectations of €4.97bn.
Net interest income, which measures earnings from loans minus deposit costs, rose 3.6% to €11.02bn on an underlying basis, above analyst expectations of €10.91bn cited by Reuters.
Fees increased 4.9%, while the bank’s efficiency ratio improved by three percentage points from a year earlier to 42.8%, supported by its digital transformation.
Executive chair Ana Botín said the performance allowed the bank to “reiterate all our targets for 2026 and our three-year plan, based on our current updated macroeconomic outlook.”
Santander’s 2026 targets include mid-single-digit revenue growth, higher profits and a core tier-one capital ratio of 12.8% to 13%.
The bank ended March with a CET1 ratio of 14.4%.
The results were supported by growth in Spain and Mexico, which offset weaker performances in Portugal and Argentina.
Profit in Spain rose 12%, helped by lending growth and a resilient domestic economy, while UK profit also increased 12% on higher fee income.
Net profit rose 6.9% in Mexico and 6.4% in Brazil, while Portugal fell 10% against a prior-year period that benefited from provision releases.
Profit in Argentina dropped 60% after impairments rose more than fourfold amid a tougher economic backdrop.
Santander also booked a €207m provision at its digital consumer unit Openbank for UK motor finance compensation, adding to £461m already set aside.
Overall provisions rose 4.6%, with the bank also pointing to higher loan-loss provisions linked partly to specific names in Europe and Brazil.
The bank’s retail division, its largest earnings contributor, increased profit by 9%, while corporate and investment banking profit rose 15%.
Santander has been expanding in investment banking, particularly in the US, where it has hired dealmakers and bought brokerage Amherst Pierpont Securities.
The update came as Santander pursued a broader expansion strategy, including the purchase of TSB in the UK and a planned $12bn acquisition of Webster Financial in the US.
The Webster deal, which would be the largest takeover of a US lender by a continental European bank, was due to be put to Webster shareholders on 26 May.
Santander said it aimed to lift net income to more than €20bn by 2028 while reducing costs and improving its efficiency ratio to about 36%.
At 1247 CEST (1147 BST), shares in Banco Santander were up 1.49% in Madrid at €10.52.
Reporting by Josh White for Sharecast.com.